This chart was put up a while back as the USB stabbed down below the supportive weekly EMA 350.  With copper, oil and other commodities plunging one wonders about the ‘D’ word.  At least this one wonders about it.

The long bond is at a critical point right now.  Given some improving technicals on the US dollar and negative ones in commodities (and their currencies; seen the Aussie and the Canada dollar lately?), what the bond does at this juncture will be telling.

Everybody’s ready for the ‘Great Rotation’ out of bonds and into stocks, especially with anticipated Fed QE tapering being Thing 1 to start the year.  The title asks whether deflation or inflation lay ahead.  Of course we could have more of the same, with Goldilocks eating her just right porridge for another year, but I don’t think that is the most likely scenario.